The Trends in Real and Accrual-based Earnings Management：An Examination of the Procomp Effect

• Main Authors: CHOU,HSIN HUI, 周欣慧
• Other Authors: 范宏書
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/13307321222031471843

碩士 === 輔仁大學 === 會計學系碩士班 === 98 === This study is focused on examining the Procomp effect on the trends in real and accrual-based earnings management. This study adopts the approach of Kothari et al. (2005) to uses ROA-control cross-sectional Jones Model to measure the accrual-based earnings management. To capture real earnings management behaviors of listed firms, this study follows the approach of Roychowdhury (2006), to estimate abnormal levels of cash flows from operations, discretionary expenses, and production costs. In addition, following the approach of Cohen and Zarowin (2008), this study combines these three measures into a comprehensive aggregate measure of real earnings management. The empirical results of this study are as follows： 1.In the Pre-Procomp period, this study observes an upward trend in accrual-based earnings management and a downward trend in real earnings management. 2.This study observes an opposite trends in the Post-Procomp period compared to that in the Pre-Procomp period. 3.The relationship between accrual-based earnings management and real earnings management is complementary.